KKR Real Estate Finance Trust (NYSE:KREF) Given Average Rating of "Hold" by Brokerages

Key Points

• The consensus broker rating is Hold (1 sell, 4 hold, 2 buy) with an average 1‑year target of $9.00, and several firms have recently cut targets (JPMorgan to $6.50).
• KKR REIT declared a $0.25 quarterly dividend (annualized $1.00) for a 14.9% yield, but the company reports negative profitability (negative ROE and net margin) and a -95% payout ratio.
• Institutional investors own about 70.2% of the shares, with recent stake increases from firms including Invesco, Mirae Asset, Charles Schwab and Wellington.

Shares of KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) have been assigned a consensus recommendation of "Hold" from the seven brokerages that are presently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating on the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $9.00.

Several analysts have commented on KREF shares. Wall Street Zen cut KKR Real Estate Finance Trust from a "hold" rating to a "sell" rating in a report on Saturday. JPMorgan Chase & Co. lowered their price target on KKR Real Estate Finance Trust from $8.00 to $6.50 and set a "neutral" rating for the company in a report on Thursday. Weiss Ratings restated a "sell (d)" rating on shares of KKR Real Estate Finance Trust in a report on Thursday, January 22nd. Citizens Jmp lowered their price target on KKR Real Estate Finance Trust from $10.00 to $9.50 and set a "market outperform" rating for the company in a report on Monday, March 23rd. Finally, Wells Fargo & Company lowered their price target on KKR Real Estate Finance Trust from $10.00 to $9.00 and set an "overweight" rating for the company in a report on Thursday, February 5th.

Institutional Trading of KKR Real Estate Finance Trust

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in KKR Real Estate Finance Trust by 7.7% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,201,066 shares of the company's stock valued at $10,810,000 after buying an additional 85,411 shares during the period. Invesco Ltd. grew its holdings in KKR Real Estate Finance Trust by 36.2% in the 3rd quarter. Invesco Ltd. now owns 1,145,916 shares of the company's stock valued at $10,313,000 after buying an additional 304,413 shares during the period. Charles Schwab Investment Management Inc. grew its holdings in KKR Real Estate Finance Trust by 10.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,002,949 shares of the company's stock valued at $8,244,000 after buying an additional 96,947 shares during the period. Nomura Holdings Inc. purchased a new stake in shares of KKR Real Estate Finance Trust during the 3rd quarter worth about $5,212,000. Finally, Wellington Management Group LLP grew its holdings in shares of KKR Real Estate Finance Trust by 4.9% during the 4th quarter. Wellington Management Group LLP now owns 574,289 shares of the company's stock worth $4,721,000 after purchasing an additional 26,878 shares during the period. Hedge funds and other institutional investors own 70.23% of the company's stock.

KKR Real Estate Finance Trust Trading Up 1.1%

KKR Real Estate Finance Trust stock opened at $6.70 on Friday. The stock has a market cap of $430.35 million, a PE ratio of -6.38 and a beta of 0.91. The stock has a 50-day moving average price of $6.69 and a 200 day moving average price of $7.77. KKR Real Estate Finance Trust has a 52 week low of $5.87 and a 52 week high of $9.98. The company has a current ratio of 407.64, a quick ratio of 407.64 and a debt-to-equity ratio of 3.83.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) last posted its quarterly earnings data on Tuesday, February 3rd. The company reported $0.22 EPS for the quarter, topping analysts' consensus estimates of $0.14 by $0.08. The firm had revenue of $32.72 million during the quarter, compared to analysts' expectations of $26.06 million. KKR Real Estate Finance Trust had a negative return on equity of 1.13% and a negative net margin of 10.80%. Equities research analysts predict that KKR Real Estate Finance Trust will post 1.05 earnings per share for the current fiscal year.

KKR Real Estate Finance Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were issued a $0.25 dividend. The ex-dividend date was Tuesday, March 31st. This represents a $1.00 annualized dividend and a yield of 14.9%. KKR Real Estate Finance Trust's payout ratio is -95.24%.

KKR Real Estate Finance Trust Company Profile

KKR Real Estate Finance Trust, Inc NYSE: KREF is a mortgage real estate investment trust sponsored by KKR & Co Inc The company focuses on originating, acquiring, financing and managing a diversified portfolio of commercial real estate debt and real estate-related assets across the United States and select European markets.

The trust's investment strategy is centered on lending to high-quality office, industrial, retail, multifamily and hotel properties. Its portfolio primarily consists of senior mortgage loans, mezzanine loans, floating-rate debt securities and preferred equity positions.

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